ISO Türkiye Export Climate Index declined in June

The Istanbul Chamber of Industry (ICI), which measures the operating conditions of the Turkish manufacturing sector in major export markets, has announced the results of the Turkish Manufacturing Industry Export Climate Index for the June 2023 period.

The Turkish Manufacturing Industry Export Climate Index from Istanbul Chamber of Industry remained above the threshold value of 50.0 in June, indicating that the improvement in the export climate of Turkish manufacturers continues.

However, the index’s decline from 52.3 in May to 51.1 showed that the strengthening of demand conditions was moderate and at the slowest pace in the five-month recovery period.

All measured figures above the threshold value of 50.0 in the index indicate an improvement in the export climate, while values ​​below 50 indicate deterioration.

EUROPE DECREASES, EXPORTS TO THE MIDDLE EAST INCREASE

According to ISO data, economic activity in Germany, the largest export market for Turkish manufacturers, was unchanged in June as a result of contraction in the manufacturing and construction sectors and growth in the service sector, while the production decreased in some European countries.

In June, the Middle East continued to be the main source of demand growth for Turkish exporters. The strongest increase in economic activity in the last 10 months was experienced in the United Arab Emirates. The strongest expansion among the countries covered by the survey was in Saudi Arabia, which has grown at the fastest rate since March 2015.

Production also rose sharply in Qatar, while Lebanon achieved growth for the first time in more than a decade. Egypt was the only country where contracting activity among regional economies remained within the scope of the survey.

‘THE EMPOWERMENT TREND IS UNCERTAIN WHETHER IT WILL CONTINUE’

Commenting on the Istanbul Chamber of Industry’s Turkey Export Weather Index, Andrew Harker, director of economics at S&P Global Market Intelligence, said:

“Although the export climate for Turkish manufacturers continued to improve in June, growing signs of a slowdown in many export markets, especially in Europe and North America, raise questions about whether the trend of strengthening foreign demand will last for long.

On the other hand, the Middle East, the only region showing no signs of slowing down, remains a major source of demand at a time when other parts of the world are losing pace.”